Legal questions about home renovation? Read more!

Questioner

Behind our own home we want to convert an existing barn into a kind of home so that one of our children can live there independently with its own entrance door. The intention is that in a few years we will then change living space so that our child can possibly take care of us (informal care). The questions that arise here are: 1 - What are the tax consequences (rental income and deductibility of mortgage interest)? 2 - What are the consequences of someone registering at our address? (both financially and legally). Suppose this is a relation of our child. 3 - Do we have any obligations towards the municipality in the context of permission, etc.?

Lawyer

I cannot give you an expert answer to questions 1 and 2. Regarding your third question: You should definitely take into account that if you want to convert a barn into a home, this may only be possible after permission has been granted by the municipality. Whether and what kind of permission will depend on what the current zoning plan for your location stipulates. So always inquire with the municipality before you start working on your plans.

Lawyer

First, you should inquire with the municipality about the possibilities for converting the shed. You will probably need a permit for this. Also in connection with the connection of toilet, water etc. You should also inquire here whether rent is permitted. This can also have fiscal consequences, but which depends on what the zoning plan says and the permit. If it is going to be converted into a home, this will also affect the WOZ. As for rent, a contract should be made to record agreements. This is to prevent conflicts. Whether your plans are allowed also depends on the mortgage provider if this is the case. They must also give permission for this, since they are co-owners as mortgage providers. Consequences for a resident need not be a problem in the case of a purchased home. Only tax-wise something could change.

Lawyer

It certainly has tax consequences. The part of the plot that is used for the construction of a home for your child will then no longer be considered part of the owner-occupied home but will be taxed as a rented home in Box III If necessary, part of the mortgage will be allocated (proportionately?) to the box III section. The interest on that portion is then no longer deductible as interest on owner-occupied homes.